Secure payment system

Abstract

The present invention relates to the field of e-commerce and in particular to making purchases on-line using payment card, for example debit, charge or credit cards. The concept of the present invention adopts an alternative approach to security methods presently employed to protect cardholders. The concept obviates the need for a cardholder to transmit Card Numbers along with other purchasing details at the time of purchase and couples this with the use of a password feature. This renders the transaction akin to a Bank Cash withdrawal that Bank/card Schemes are totally happy with from a security point of view but are reluctant to allow e-commerce and/or any others access to their “network” to ensure Security.

1. A computer data processing method for processing a payment transaction between a debit, credit or charge card cardholder and a merchant, comprising the steps of:
 receiving a request from the cardholder to connect to a network, said request including a cardholder password, 
 authenticating said cardholder request and providing access by said cardholder to the network, 
 receiving a payment request associated with the transaction between the cardholder and the merchant at a transaction processor, said payment request identifying merchant information and a transaction value, 
 retrieving, at the transaction processor, payment card details for the cardholder from a cardholder details database, 
 submitting a payment authorization request from the transaction processor to an authorization host for authorizing a first transaction to debit the transaction value from the cardholder payment card and credit the transaction value to a system merchant account associated with the transaction processor, the authorization request including a system merchant code associated with said transaction processor, the transaction value, and the retrieved payment card details, wherein the system merchant code identifies the transaction processor for payment of said on-line payment transaction, and 
 forwarding information from the transaction processor to the merchant upon receipt of an authorization or to the cardholder upon receipt of a refusal of an authorization. 
 
     
     
       2. The computer data processing method according to  claim 1 , further comprising the step of posting to a payment host a request to process the first transaction to debit the transaction value from the cardholder payment card and credit the value to the system merchant account associated with the transaction processor upon receipt of said authorization. 
     
     
       3. The computer data processing method according to  claim 2 , further comprising the step of delaying posting the request to process the first transaction until a confirmation of delivery has been received. 
     
     
       4. The computer processing method according to  claim 2  wherein:
 the forwarding activity includes forwarding, to the merchant, system cardholder information associated with a system cardholder account and the transaction value, wherein the system cardholder account is associated with the transaction processor, and 
 the method further comprises engaging in a second transaction to debit the transaction value from the system cardholder account and credit the transaction value to a merchant account associated with the merchant in order to complete the payment transaction. 
 
     
     
       5. The computer processing method according to  claim 1 , wherein the information forwarded to the merchant by the transaction processor includes system cardholder information corresponding to a system cardholder account for the transaction processor and the transaction value. 
     
     
       6. A payment processing system for processing a payment transaction between a merchant and a cardholder connected to one another by means of respective networked computers, comprising:
 a transaction processor for performing operations comprising: 
 receiving a payment request associated with the transaction, said payment request identifying merchant information and a transaction value, 
 retrieving payment card details for the cardholder from a database of cardholder details, 
 submitting a payment authorization request to an authorization host for authorizing a first transaction to debit the transaction value from the cardholder payment card and credit the transaction value to a system merchant account associated with the transaction processor, the payment authorization request including the retrieved payment card details, a system merchant code associated with the transaction processor, and the transaction value, wherein the system merchant code identifies the transaction processor for payment of the payment transaction, and 
 forwarding information to the merchant in response to an authorization or to the cardholder upon receipt of a refusal of an authorization. 
 
     
     
       7. The system of  claim 6 , wherein the information forwarded to the merchant by the transaction processor includes system cardholder information corresponding to a system cardholder account for the transaction processor and the transaction value. 
     
     
       8. The system of  claim 6 , wherein the transaction processor is configured to perform a further upon receipt of the authorization, the further activity comprising:
 posting, to a payment host, a request to process the first transaction to debit the transaction value from the cardholder payment card and credit the transaction value to the system merchant account associated with the transaction processor. 
 
     
     
       9. The system of  claim 8 , wherein the information forwarded to the merchant comprises system cardholder information associated with a system cardholder account and the transaction value; and wherein the system is configured to perform the further activity of:
 engaging in a second transaction to debit the transaction value from the system cardholder account and credit the transaction value to a merchant account associated with the merchant in order to complete the payment transaction. 
 
     
     
       10. The computer data processing method for processing a payment transaction between a debit, credit or charge card cardholder and a merchant comprising:
 receiving, at a transaction processor, a purchase request associated with said payment transaction between said cardholder and said merchant, said purchase request identifying merchant information for said merchant and a transaction value; 
 retrieving, at said transaction processor, cardholder payment card details from a cardholder details database; 
 submitting a payment authorization request for said retrieved payment card details from said transaction processor to an authorization host for authorizing a first transaction to debit the transaction value from the cardholder payment card associated with said cardholder and credit the transaction value to a system merchant account associated with the transaction processor, said payment authorization request including said transaction value, a system merchant code associated with said transaction processor, and said cardholder payment card details; 
 upon receipt of an authorization at said transaction processor from said authorization host, posting a request to process said first transaction to debit said transaction value from said cardholder payment card associated with said cardholder and credit said transaction value to the system merchant account associated with said transaction processor; and 
 engaging in a second transaction to debit said transaction value from a system cardholder account associated with said transaction processor and credit said transaction value to a merchant account associated with said merchant in order to complete said payment transaction between said cardholder and said merchant without provision of details of said cardholder payment card to said merchant. 
 
     
     
       11. The method as claimed in  claim 10  further comprising preventing each of said engaging activities upon receipt of a refusal of said authorization. 
     
     
       12. The method as claimed in  claim 10  wherein in response to posting a request to process said first transaction, said method further comprises:
 providing, from said transaction processor to said merchant, system cardholder information associated with said system cardholder account for authorization of said second transaction; and 
 posting a request to process said second transaction upon receipt of an authorization of said second transaction at said merchant from an authorization host. 
 
     
     
       13. The method as claimed in  claim 12  wherein said purchase request includes cardholder information associated with said cardholder, and said providing operation comprises:
 modifying, at said transaction processor, said purchase request associated with said payment transaction to replace said cardholder information with said system cardholder information; and 
 forwarding said modified purchase request with said system cardholder information to said merchant. 
 
     
     
       14. The method as claimed in  claim 12  wherein in response to said providing activity, said method further comprises prior to engaging in said second transaction, submitting a payment authorization request from said merchant to an authorization host for authorizing said second transaction, said payment authorization request including said transaction value, a merchant identifier associated with said merchant, and said system cardholder information associated with said transaction processor. 
     
     
       15. The method as claimed in  claim 10  further comprising:
 receiving, at said transaction processor, a cardholder password from said cardholder; and 
 authenticating said cardholder password to enable said cardholder to participate in commerce with said merchant. 
 
     
     
       16. The method as claimed in  claim 10  wherein said purchase request includes cardholder information associated with said cardholder, said cardholder information excluding details of said cardholder payment card associated with said cardholder, and said method further comprises:
 retrieving, at said transaction processor, said cardholder information from said cardholder details database; 
 verifying that said cardholder information included in said purchase request matches said cardholder information retrieved from said database prior to said engaging activities; and 
 preventing said first and second transactions when said cardholder information included in said purchase request fails to match said cardholder information retrieved from said database.